Estate of Avrom A. Silver, Deceased, Bonny Fern Silver, Kenneth Kirsh, and Ronald Faust, Executors - Page 9

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               respect to any transfer of property that is not subject                
               to U.S. estate tax.  [Emphasis added.]                                 
          Treasury Department Technical Explanation of the Protocol                   
          Amending the Convention Between the United States of America and            
          Canada (June 13, 1995), 4 Roberts & Holland, Legislative History            
          of United States Tax Conventions 1366, 1403 (1996).8                        
               Further, the Senate report from the Committee on Foreign               
          Relations states:                                                           
                    The proposed revised protocol obligates Canada and                
               the United States to treat a decedent’s bequest to a                   
               religious, scientific, literary, educational, or                       
               charitable organization resident in the other country                  
               in the same manner as if the organization were a                       
               resident of the first country.  Thus, for U.S. estate                  
               tax purposes, a deduction generally is allowed for a                   
               bequest by a Canadian resident to a qualifying exempt                  
               organization resident in Canada, provided the property                 
               constituting the bequest is subject to U.S. estate tax.                
               [Emphasis added.]                                                      
          S. Exec. Rept. 104-9, at 10 (1995).9  These explanations clarify            
          that, to take advantage of article XXIX B of the 1995 Protocol,             

               8  The technical explanation is the “official guide to the             
          Protocol.  It explains policies behind particular provisions, as            
          well as understandings reached during the negotiations with                 
          respect to the interpretation and application of the Protocol.”             
          Treasury Department Technical Explanation of the Protocol                   
          Amending the Convention Between the United States of America and            
          Canada (June 13, 1995), 4 Roberts & Holland, Legislative History            
          of United States Tax Conventions 1366 (1996).                               
               9  We note that the Joint Committee on Taxation explanation            
          of the 1995 Protocol provides further support that a deduction is           
          allowed for U.S. estate tax purposes provided the property                  
          constituting the bequest is subject to U.S. estate tax.  Joint              
          Comm. on Taxation, Explanation of Proposed Protocol to the Income           
          Tax Treaty Between the United States and Canada, at 9 (J. Comm.             
          Print 1995).                                                                





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